Delta Warns of Wider First-Quarter Loss

From Reuters

Delta Air Lines Inc. said it expects to report a wider first-quarter loss than a year ago as bookings drop and costs rise for fuel, insurance, security and pensions.

The Atlanta-based airline, which posted a $1.27-billion net loss in 2002, also said it awarded Chairman and Chief Executive Leo Mullin a pay package worth about $13 million last year, more than twice what he received in 2001.

Delta said in its annual report filed with the Securities and Exchange Commission that, “based on the difficult business environment,” it expects a first-quarter net loss greater than the $397 million, or $3.25 a share, it had a year ago. It also expects to report a full-year net loss.

Delta shares rose 29 cents to $9.81 on the New York Stock Exchange.